Mortgage Calculator
Estimate your full monthly mortgage payment — principal, interest, property tax, insurance, PMI, and HOA.
How this mortgage calculator works
Your mortgage payment has two very different parts: principal & interest, which is fixed by your loan amount, rate, and term, and the extra costs your lender typically collects along with it — property tax, homeowners insurance, PMI, and HOA dues. This calculator computes each piece separately and adds them together, sometimes called your PITI payment (Principal, Interest, Taxes, Insurance).
The formula
Principal & interest = L × [r(1+r)n] ÷ [(1+r)n − 1], where L is your loan amount (home price minus down payment), r is your monthly interest rate (APR ÷ 12), and n is the number of monthly payments (years × 12).
Why PMI matters
Private mortgage insurance protects the lender — not you — if you default, and it's typically required whenever your down payment is less than 20% of the home price. It usually costs between 0.3% and 1.5% of the loan amount per year and can be removed once you reach 20% equity, so it's worth factoring into your true monthly cost when comparing how much home you can afford.
Frequently asked questions
Why is my payment higher than just principal and interest?
Most lenders collect property tax and homeowners insurance monthly and hold them in an escrow account, paying the bills on your behalf when they're due. That's why your total monthly mortgage payment is almost always higher than the principal-and-interest amount alone.
How much house can I afford?
A common guideline is keeping your total monthly housing payment (PITI) at or below 28% of your gross monthly income, and your total debt payments below 36%. Try a few home price and down payment combinations here to see what fits your budget.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has a higher monthly payment but a much lower interest rate and dramatically less total interest paid. A 30-year loan is more affordable month-to-month, which can be useful for cash flow or investing the difference elsewhere. Compare both terms with your real numbers above.
Does this include closing costs?
No — closing costs (typically 2–5% of the loan amount) are a separate, mostly one-time expense due at closing and aren't part of your recurring monthly payment, so they're not included here.